With its cross-border cooperation on fiscal and economic issues, EconPol Europe aims at promoting growth, prosperity and social cohesion in Europe and, in particular, at providing research based contributions to the successful development of the European Economic and Monetary Union (EMU). Its tasks consist of joint interdisciplinary research in the following areas:
Research Topics Overview
The EU’s most important economic project is the European internal market. Other recognised goals include ensuring respect of the fundamental freedoms and deepening economic integration. The extent to which a functioning internal market requires the coordination or harmonisation of national policies, however, is debatable. The EU is also expected to bring together the interests of member states in the fields of foreign and security policy, migration policy and international environmental policy.
Both the financial crisis of 2008 and the debt crisis in the years to follow were largely due to malfunctions and regulatory deficits in the financial sector. As a result, financial sector reform, and banking regulation in particular, lie at the heart of the reform agenda of European and international economic policy. With the establishment of the European Banking Union, policy in Europe has taken important steps to improve the framework of the financial sector. Despite these reforms, the banking sector in Europe remains prone to crises.
The debt crisis in the euro area has highlighted the need to reform the monetary union’s institutional architecture. Although important reforms have been adopted, it is unclear whether they are sufficient to guarantee the stable development of public finances, the banking sector and the economy as a whole. The division of responsibility between monetary and fiscal policy is always the subject of conflict. The coordination and supervision of economic and fiscal policy in the framework of the Stability and Growth Pact is not effective enough, and rule violations go unpunished.